China's Strategic Shift Towards Enhanced Domestic Consumption

China plans to increase government investment in people's livelihoods and significantly boost household consumption of GDP by 2030. While prioritizing technology and manufacturing, the nation aims to address its economic imbalances by expanding its domestic market. Leaders highlight the importance of education, science, and technology talent development.

China aims to adjust its economic strategy by significantly increasing household consumption as a portion of GDP over the next five years. This was announced following the release of China's economic and policy outline for 2026-2030, which emphasizes manufacturing and technology development.

The STAR50 index, reflecting China's tech-focused initiatives, saw a rise of 3% as markets reacted positively to the policy outline. President Xi Jinping underscored the nation's focus on key technology breakthroughs in a recent meeting, highlighting the need for integrated development of education, science, and technology talent.

Despite a downturn in economic growth in the third quarter, Chinese policymakers remain optimistic. They aim to invigorate the domestic market—a crucial component of China's modernization efforts. By enhancing domestic consumption, China seeks to move away from dependency on exports and address structural imbalances.

(With inputs from agencies.)